Employment Payments 2020

April 2020 brings around the regular changes to various payments used throughout employment.

The National Minimum Wage Payments will increase as detailed in the table below:

Age Group Hourly Rate
Apprentice* £4.15
Under 18 £4.55
18 to 20 £6.45
21 to 24 £8.20
25 and over £8.72

*Apprentices are entitled to the apprentice rate if they’re either: aged under 19, OR aged 19 or over and in the first year of their apprenticeship

The Conservative Government has pledged that National Minimum Wage will rise to £10.50 for all aged 21 and over, by 2024. So expect continued increases!

The minimum annual salary now for a 25 year old will be just over £17,000 which is close to the average salary for a job role that requires professional qualifications; yet the same money could be earned for working a job that requires less experience/qualifications.

Employers need to consider this when attracting new employees but also look at the gap that will naturally decrease to their non-minimum wage workers; these increases and the pledged Conservative Government wage rise will have a significant knock on effect throughout an company’s pay structure.

In addition to the Wage increases the following statutory rates will apply from April 2020:

Per week:

  • Statutory Sick Pay (SSP):
    £95.85 – available from day 1 for workers with a DIAGNOSIS of Coronavirus
  • Maternity (SMP), Paternity (SPP), Adoption (SAP) and Shared Parental (ShPP):
    £151.20 or 90% of the employee’s average weekly earnings, whichever is lower
  • Redundancy Pay
    Capped at £538

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